CorroHealth layoffs: Crucial conciliation talks on Friday to decide fate of 800 sacked employees

Kochi: The ongoing labour dispute over the abrupt closure of Kerala operations of US-based medical coding and healthcare analytics firm CorroHealth Infotech Pvt. Ltd. has entered a crucial phase, with all eyes on a tripartite conciliation meeting scheduled for 11 am on Friday at the Ernakulam Collectorate.

The meeting, chaired by State Labour Minister Bindhu Krishna, will bring together senior officials of the Labour Department, representatives of the terminated employees and the company’s top management in an effort to resolve the dispute arising from the mass termination of more than 800 employees.

The meeting assumes significance after the Kerala High Court on Wednesday directed all stakeholders to actively participate in the conciliation process under the provisions of the Industrial Relations Code, 2020, to explore the possibility of an amicable settlement.

Justice P Gopinath issued the direction while hearing a writ petition filed by CorroHealth challenging an earlier communication issued by the Ernakulam District Labour Officer (DLO), which had asked the company to maintain the status quo and keep its offices open pending conciliation.

The court clarified that the DLO’s communication should not be treated as an absolute direction but as part of the statutory conciliation process initiated by the state government. At the same time, the High Court accepted the state’s contention that the government has a responsibility to intervene when the livelihoods of hundreds of employees are suddenly affected.

Appearing for the state, Advocate General K Jaju Babu argued that the government had a “social obligation” to protect the interests of workers, particularly since the overwhelming majority of those affected were women whose livelihoods had been abruptly disrupted.

Following the court’s observations, counsel appearing for CorroHealth informed the High Court that the company would cooperate with the Labour Department and participate in the conciliation proceedings.

The dispute erupted last week after employees arriving at the company’s offices in Palarivattom, Kochi, and Kozhikode found themselves locked out of their work systems and were issued separation letters with immediate effect. Since then, employees are on protest demanding reinstatement.

They contend that the terminations were illegal as they were communicated through plain-paper notices without the mandatory one-month prior notice. Employees have also disputed the company’s claim that retrenchment compensation has been paid, arguing that the amounts credited to their bank accounts represent only their accrued statutory dues and not retrenchment compensation.

CorroHealth, however, has defended its decision, stating that the closure of its Kerala operations was necessitated by operational challenges beyond its control. The company has argued that under the Industrial Relations Code, the District Labour Officer does not have the authority to compel an employer to continue operations or retain employees during a closure. It has also informed the High Court that retrenchment compensation has already been transferred to the affected employees’ bank accounts.

Employees have further alleged that while the company has shut down its Kerala operations, it continues to recruit staff at its other centres, including Noida and Hyderabad, raising questions over the rationale behind the closure.

The dispute has now evolved into a significant test of labour law enforcement in Kerala, with the State Government taking a firm stand in support of the affected employees.

Bindu Krishna has warned that if the company fails to arrive at a fair settlement during Friday’s conciliation meeting or refuses to cooperate with the process, the government will initiate legal proceedings and seek the intervention of the Union Ministry of Labour.